Bristol-Myers Squibb Snaps Up Private Cancer Drugmaker in $1.25 Billion Buyout

February 23, 2015
By Mark Terry, BioSpace.com Breaking News Staff

New York-based Bristol-Myers Squibb Company announced today that it had inked a definitive agreement with San Carlos, Calif.-based Flexus Biosciences, Inc.. Under that deal, Bristol-Myers Squibb bought all of Flexus’ outstanding capital stock. Flexus is a privately held company focused on novel anti-cancer therapies. That deal has a possible total consideration of $1.25 billion, including $800 million upfront and possible milestone payments that could add another $450 million.

Flexus’ lead preclinical product is a small molecule IDO1-inhibitor. The company hopes to file an IND in the last half of 2015. Bristol-Myers Squibb will also pick up Flexus’ IDO/TDO discovery program. IDO and TDO are enzymes expressed by many tumors cells. They act to suppress T-cell function by producing kynurenine, which slows down the immune system’s function on or around tumor cells.

In related news, South San Francisco, Calif.-based Rigel Pharmaceuticals, Inc. announced today that it had entered into a collaboration agreement with Bristol-Myers Squibb (BMY). The two companies will work to find and develop cancer drugs based on Rigel’s portfolio of small molecule TGF beta receptor kinase inhibitors.

Bristol-Myers Squibb pays Rigel $30 million upfront with developmental and regulatory milestones that could add up to more than $309 million. Bristol-Myers Squibb gets exclusive, worldwide rights to develop and commercialize any drugs that come from the collaboration.

“As a company dedicated to leading scientific advances in immuno-oncology, we are committed to exploring the utility of TGF beta inhibition as a potential therapeutic to fight certain cancers,” said Carl Decicco, head of Discovery, R&D at Bristol-Myers Squibb in a statement. “Working with Rigel and having access to their TGF beta receptor kinase inhibitors extends our existing portfolio of immunotherapeutic approaches to include this key mediator of immunosuppression in the tumor microenvironment.”

Both of these deals mark Bristol-Myers Squibb’s current emphasis on immuno-oncology therapeutics. “This collaboration places our TGF beta receptor kinase inhibitor program into the hands of Bristol-Myers Squibb, a premier immuno-oncology company,” said Raul Rodriguez, president and chief executive officer of Rigel in a statement. “Together, we believe TGF beta inhibition may offer novel therapeutic opportunities in oncology treatments. Rigel has focused on immunology, and oncology via numerous partnerships. This collaboration is Rigel’s first in immuno-oncology and is one of the Company’s several programs in this area.”

“Bristol-Myers Squibb is committed to leading scientific advances in immuno-oncology and our acquisition of Flexus will expand our innovative pipeline with an important approach to enhancing immune responses in cancer,” said Francis Cuss, executive vice president and chief scientific officer of Bristol-Myers Squibb in a statement. “With the addition of a potentially best-in-class IDO1 inhibitor and the broad IDO/TDO programs, Bristol-Myers Squibb will accelerate its ability to explore numerous immunotherapeutic approaches across tumor types, including combinations with our biologic checkpoint and co-stimulatory agents that targets different and complementary pathways.”

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BioSpace Temperature Poll
Analyst Mark Schoenebaum, a biotech and pharmaceuticals analyst and medical doctor for ISI Group Evercore, has been running a Best Hair in Biopharma contest for several months now. So far, the candidates are Bristol-Myers Squibb Company's John Elicker, Receptos’ Chief Executive Officer Faheem Hasnain, Celgene's Vice President of Investor Relations Patrick Flanigan and Acorda Therapeutics' Ron Cohen.

We want to know what our BioSpace community thinks: Who do you believe actually has the Best Hair in BioPharma?